House of Lords APPROVE out-of-area taxi and private hire enforcement powers as part of Devolution Bill amendment debate
- Perry Richardson
- Apr 15
- 4 min read
New powers allowing licensing authorities to take immediate action against taxi and private hire drivers and operators working outside their home areas dominated debate in the House of Lords as peers considered amendments to the English Devolution and Community Empowerment Bill.
At the heart of the discussion was a long-standing industry issue, where private hire drivers licensed in one area operate predominantly in another, often beyond the effective reach of local enforcement teams. Ministers argued the changes would close gaps that have persisted for years, particularly around passenger safety and accountability.
Transport Minister Lord Hendy of Richmond Hill said the reforms would allow enforcement officers to act immediately where risks are identified, regardless of where a licence was issued.
He told peers the Government had “listened to the concerns raised” about cross-border working and was introducing measures to ensure officers “can take immediate action against any licence, irrespective of which authority issued it”.
Peers focus on cross-border licensing loopholes as Government strengthens enforcement against drivers and operators working outside issuing authorities
The new framework will allow licensing authorities to suspend driver, vehicle and operator licences for up to 48 hours where there is an immediate risk to public safety. Crucially, these powers apply even when the licence holder is operating outside the area in which they were originally licensed.
In addition, a formal duty will require authorities to report breaches of national standards back to the issuing authority. That authority must then decide within 20 working days whether to suspend or revoke the licence, creating a clearer chain of accountability between councils.
Lord Hendy said the changes were designed to ensure that “licensing authorities are meeting their obligations and that licensees they suspect are unfit are being reported”, adding that data will be collected and published to monitor how the system operates.
The measures directly respond to concerns highlighted in the Casey Review into Group-Based Child Sexual Exploitation, which identified weaknesses in taxi and private hire regulation, including the risks associated with out-of-area working.
Ex-Liberal Democrat London Assembly Transport Chair Baroness Pidgeon, who had previously tabled amendments on the issue, welcomed the Government’s approach.
“In Committee, I had suggested granting powers to all licensing authorities to take enforcement action on any private hire or taxi vehicle on their streets, wherever they are licensed,” she said. “We know cross-border hiring is a real issue and that the problem needs addressing.”
She added that the Government’s amendments provide “a solid way forward” by introducing both immediate suspension powers and a duty to report concerns across authority boundaries.
“These are a solid way forward. We on these Benches fully support these amendments to start to close the safety gaps in the licensing and enforcement of taxis and private hire,” Baroness Pidgeon said.
However, while there was broad agreement on tackling out-of-area enforcement gaps, concerns emerged over how far the new powers should extend, particularly in relation to private hire operators.
Shadow Transport Minister Lord Moylan supported the principle of enabling local officers to act against unsafe drivers and vehicles operating in their area. He gave a practical example of a driver travelling between licensing areas and encountering enforcement action.
“I completely understand why… the enforcement officer should immediately suspend his licence temporarily, even though that licence was issued not in Droitwich Spa but in Birmingham,” he said. He added that similar logic applied to unsafe vehicles, such as those with defects.
But Lord Moylan questioned whether the same immediate powers should apply to operators, particularly larger firms operating across multiple regions.
“Any evidence that the operator is operating by, for example, using other drivers can only ever be partial at a particular moment for a single law enforcement officer,” he argued, suggesting that action against operators should instead be handled through formal investigation by the issuing authority.
He warned that the powers could, in extreme cases, lead to disproportionate outcomes, including the potential suspension of large operators based on limited evidence gathered during roadside checks.
In response, Lord Hendy defended the inclusion of operator suspension powers as a necessary part of closing enforcement loopholes linked to out-of-area working.
“We want to keep passengers safe while protecting the good reputation of the trade from a minority who are irresponsible and/or potentially dangerous,” he said.
He argued that excluding operators from immediate enforcement powers would create inconsistencies in the regulatory framework. “Why would we grant a power… to prevent drivers and vehicles that pose an immediate risk… but not provide the same powers for operators if there are urgent safety concerns?” he asked.
The Minister outlined scenarios where such action could be justified, including cases where operators knowingly use unlicensed drivers or vehicles. “An example… would be the discovery of the deliberate use of unlicensed drivers and/or vehicles which an enforcement officer judged to be a deliberate action on the part of the operator,” he said.
He added that while the power could apply to large operators, it would be used sparingly and only where there is clear evidence of risk. “The threshold for its use will be high… and it is certainly not intended to be used as a means of punishment,” he said.
Lord Hendy also stressed that out-of-area working in itself would not trigger enforcement action. “Operating… outside the area of the authority which issued its licence… is not of itself a risk to public safety,” he said, warning that using the powers solely on that basis would be a misuse.
Alongside the enforcement provisions, peers also agreed Amendment 266, which removes the word “minimum” from licensing standards and replaces it with “national standards”. Ministers said this change better reflects the intention to create a consistent, robust baseline across England.
Lord Hendy said the standards “will not be minimal” but instead ensure that “wherever they live or travel in England, the taxi and private hire vehicle services that they use will be subject to robust licensing standards”.
The debate highlighted a growing consensus across parties that the current system, which allows significant cross-border working, requires reform to ensure consistent safety standards and effective enforcement.
While the amendments were agreed without division, ministers acknowledged that further work is needed. Lord Hendy described the measures as “part of a package of immediate steps” and confirmed that wider engagement with the sector is ongoing.
“These measures are absolutely not the end of the conversation,” he said, signalling the likelihood of further legislative changes aimed at modernising taxi and private hire regulation.
